4 Partner LLC - One gone bad Forced out......Does he owe us money?

in Forum: People: Hiring, Partnering, Mentoring
Jul. 02 2008 at 1:49 PM
No Photo Posted by: micarm
Hello Everyone,  OK We have a 4 partner llc.  One partner went off deep end and tried taking the business down.  His actions and the opperating agreement clearly supports the force out.  And we have verbaige for buy out after the valuation of the business.  However, when all is calculated we anticipate that the value will be a -$100k payable to 2 partners.  Since this partner that is being forced out, never contributed money, but has 32 % responsibility for the Profit/Loss during his involvement, can we actually charge him for 32% of the loss?

Many thanks.............Mike

Jul. 03 2008 at 1:26 AM
Nuevolution Posted by: Nuevolution
Mike!
First of all you are not explaining yourself throughly, my question to you is, where does your 100K anticipation comes from? and another thing that caught my attention is "after the valuation of the business" it seems to me like you're still in start up mode and your company doesn't have any real value other than an "anticipation of 100K". Am I correct? or did I mis-interpret your explanation.

You can only cash out someone when your company is worth something. Honestly, if I where you. I would set my company's net worth at 1$2.00 (anticipated value" and split it 4 ways.. or buy him out at 3 bucks...
See you're not explaining yourself... please explain where your numbers are coming from...

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net


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